Source - LSE Regulatory
RNS Number : 5317U
FIH Group PLC
24 November 2023
 

24 November 2023

FIH group plc

("FIH" or the "Group")

Results for the Six Months Ended 30 September 2023

FIH, the AIM quoted international specialist services group with businesses in the Falkland Islands and the UK, is pleased to announce its unaudited results for the six months ended 30 September 2023 ("the period"). Comparisons shown below are for the same period in 2022 unless otherwise stated.

Consistent Performance and a Strong Foundation for the Second Half of the Year

 

Highlights

 

·      Revenue up 17% to £26.7 million (2022: £22.9 million) with improvement in all three businesses.

·      Underlying pre-tax profit of £0.6 million (2022: £0.6 million) reflecting inflationary pressures across all businesses and investment in key people to drive future growth in Momart.

·      Strong cash position of £9.2 million as at 30 September 2023 (2022: £7.6 million).

·      An interim dividend to be paid of 1.25 pence per share (2022: 1.2 pence per share).

 

Outlook

 

·      Momart and Portsmouth Harbour Ferry Company ("PHFC") performing in line with expectations.

·      Falkland Islands Company ("FIC") performance in the second half should benefit from the Falkland Islands tourist season and increased construction activity in the more productive spring and summer months.

 

Stuart Munro Chief Executive, said:

 

"Despite the inflationary pressures experienced in all areas of the business, the Group delivered an underlying pre-tax profit of £0.6 million, which was consistent with the prior year. The UK businesses are delivering as expected, with Momart on track to deliver a much stronger second half. In FIC, the second half of the year should benefit from increased construction activity in the traditionally more productive austral spring and summer months. This is also the start of the tourist season, which should boost both direct and indirect revenues in a number of FIC business sectors, including Retail and Penguin Travel in Support Services."

 

 

Enquiries:

FIH group plc

Stuart Munro, Chief Executive

Reuben Shamu, Chief Financial Officer

 

 

Tel: 01279 461630

 

WH Ireland Ltd. - NOMAD and Broker to FIH

Chris Fielding / James Bavister

 

 

Tel: 0207 220 1666

 

Novella Communications

Tim Robertson / Chris Marsh

 

 

Tel: 020 3151 7008

 


 

Market Abuse Regulation (MAR) Disclosure

 

This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

 

The person responsible for arranging the release of this announcement on behalf of the Company is Stuart Munro Chief Executive of the Company.

Chairman's Statement

 

Revenue growth in all three businesses and an underlying pre-tax profit of £0.6 million, which was consistent with the prior year despite continuing global economic pressures, demonstrate the Group's resilience and provide a solid base for the traditionally stronger second half of the year.

 

Our people are crucial to the Group's success and I would like to thank each and every one of them for their skill, dedication and hard work, which is evident across the businesses and very much appreciated.

 

Dividend

 

I am pleased to announce an interim dividend of 1.25 pence per share (2022: 1.25 pence per share) which will be paid on 12 January 2024 to shareholders on the register at the close of business on 1 December 2023.

 

The Group has a Dividend Reinvestment Plan ("the Plan") that allows shareholders to reinvest dividends to purchase additional shares in the Group. For shareholders to apply the proceeds of this and future dividends to the Plan, application forms must be received by the Group's Registrars by no later than 15 December 2023*.

 

Board and Governance

 

On 1 June 2023, Holger Schröder was appointed as a non-executive director of the Group.

 

As announced on 24 February 2023, Robin Williams stepped down from the Board at the AGM on 28 September 2023 and I was appointed the non-executive Chairman of the Group. On behalf of the Board, I would like to thank Robin for his extensive contribution to the Group in his six years as Chairman and look forward to working with the rest of the Board to drive the Group forward.

 

 

 

 

 

Nick Henry

Chairman

24 November 2023

 

 

* Existing participants in the Plan will automatically have the interim dividend reinvested. Details on the Plan can be obtained from Link Group on 0371 664 0381 or at www.signalshares.com. Calls are charged at the standard geographic rate and will vary by provider. If you are outside the United Kingdom, please call +44 371 664 0381. Calls outside the United Kingdom will be charged at the applicable international rate. The lines are open from 9.00am to 5.30pm, Monday to Friday excluding public holidays in England and Wales.

Chief Executive's Review

 

Overview

 

Revenue of £26.7 million for the six months ended 30 September 2023 was £3.8 million ahead of the same period last year, with improvements in all three businesses and in the majority of their constituent business sectors.

Group underlying pre-tax profit of £0.6 million remained in line with the same period last year due to a number of factors, including inflationary pressures which impacted all businesses and FIC Retail in particular, and investment in staff in Momart to deliver future growth.

 

Group Trading Results for the Six Months Ended 30 September 2023

 

 

Group revenues

Six months ended 30 September


2023

£m

2022

£m

Change

%






Falkland Islands Company

 

15.2

12.3

23.6

Momart

 

9.3

8.6

8.1

Portsmouth Harbour Ferry

 

2.2

2.0

10.0

Total revenue

 

26.7

22.9

16.6

 

 




Group underlying pre-tax profit / (loss)*

 




Falkland Islands Company**

 

0.2

0.3

(33.3)

Momart**

 

-

(0.1)

-

Portsmouth Harbour Ferry**

 

0.4

0.4

-

Total underlying pre-tax profit*

 

0.6

0.6

-

Non-trading items (see note 3)***

 

0.2

1.7

(88.2)

Reported profit before tax

 

0.8

2.3

(65.2)

 

* Underlying pre-tax profit is defined as, profit before tax, before non-trading items.

** As in prior years the profits reported for each operating company are stated after the allocation of head office

management and plc costs which have been applied to each subsidiary on a consistent basis.

*** As described in the basis of preparation, the comparative numbers were restated to correct the accounting treatment of hedge accounting.

 

Dividend

An interim dividend of 1.25 pence per share (2022: 1.2 pence per share) will be paid on 12 January 2024 to shareholders on the register at the close of business on 1 December 2023.

 



 

Group Operating Company Performance

Falkland Islands Company

 

Total revenue of £15.2 million was £2.9 million ahead of the same period last year, largely driven by growth in Falkland Building Services ("FBS"), due mainly to the £17.3 million contract to build a total of 70 Houses for the Falkland Islands Government ("FIG") and the Ministry of Defence ("MOD"). Revenue recognised on this contract also included circa £0.5 million from variation orders. Retail revenue also improved, although the level of inflation put pressure on the resultant margin. These increases were partly offset by revenue reductions in Falkland 4x4, which experienced difficulties with sourcing both used and new vehicles, and Support Services, where a short-term arrangement to run a nursery service ended in the second half of the prior year.

 

The underlying operating profit of £0.2 million was £0.1 million below the same period last year. This was mainly due to reduced margins in Retail due to high energy costs and other inflationary pressures, together with reduced vehicle sales in Falkland 4x4 and less activity in Support Services.

 

 

FIC Operating Results

Six months ended 30 September

2023

£m

2022

£m

Change

%

Revenues

 



Retail

4.7

4.2

11.9

FBS (housing and construction)

7.3

4.3

69.8

Falklands 4x4

1.2

1.7

(29.4)

Support Services

1.5

1.6

(6.3)

Property Rental

0.5

0.5

-

Total FIC revenue

15.2

12.3

23.6

FIC underlying operating profit

0.2

0.3

(33.3)

 

 



Net interest expense

-

-

-

FIC underlying profit before tax

0.2

0.3

(33.3)

FIC underlying operating profit margin

1.3%

2.4%


 

 

Momart

 

Revenue of £9.3 million for the six months to 30 September 2023 was £0.7 million ahead of the prior year, with improvements across all sectors of the business.

 

The majority of the growth arose in Gallery Services, driven by a strong commercial market in both the gallery and art fair sectors and increased trading with both existing and new clients. The growth in Exhibitions was less pronounced, but the strength of its order book is expected to result in a stronger second half performance.    

 

The underlying operating profit of £0.1 million was £0.1 million ahead of the same period last year, although this was suppressed slightly by investment in additional headcount and associated recruitment costs necessary to deliver future growth.

 

 

Momart Operating Results

Six months ended 30 September

2023

£m

2022

£m

Change

%

Revenues

 



Museum Exhibitions

4.6

4.5

2.2

Gallery Services

3.2

2.8

14.3

Storage

1.5

1.3

15.4

Total Momart revenue

9.3

8.6

8.1

 

 



Momart underlying operating profit

0.2

0.1

100.0


 



Net interest expense

(0.2)

(0.2)

-

Momart underlying profit / (loss) before tax

-

(0.1)

-

 

 

 

Portsmouth Harbour Ferry Company

Passenger numbers for the first half of the year were broadly in line with the same period last year, with inflationary fare rises in April 2023 being largely responsible for revenue increasing by £0.2 million to £2.2 million.

 

Underlying operating profit of £0.5 million was in line with the prior year, despite the latter including £0.1 million of non-recurring support from Gosport Council.

 

 

PHFC Operating Results

Six months ended 30 September

2023

£m

2022

£m

Change

%

Revenues

 



Ferry fares

2.2

2.0

10.0

Total PHFC revenue

2.2

2.0

10.0

 

 



PHFC underlying operating profit

0.5

0.5

-

 

 



Pontoon lease liability & vessel loan expense

(0.1)

(0.1)

-

PHFC underlying profit before tax

0.4

0.4

-

 

Trading Outlook

The trading outlook for the Group remains positive.  PHFC continues to perform as expected and in Momart, the strong order book in Exhibitions, continued growth in the Gallery Services business and a trading cycle which is skewed towards the latter half of the year, should result in a stronger second half performance. In FIC, activity in FBS is expected to accelerate in the second half of the year, which includes the traditionally more productive austral spring and summer months. The second half of the year also benefits from the tourist season, which should boost both direct and indirect revenues in a number of FIC business sectors, including Retail and Penguin Travel in Support Services.

 

 

 

 

 

Stuart Munro

Chief Executive

24 November 2023



 

Chief Financial Officer's Review

 

Financial Review

 

Restatements

 

As detailed in the basis of preparation, the comparative numbers were restated to correct the accounting treatment of some right of use assets and the application of hedge accounting.

 

Revenue

 

Group revenue increased by £3.8 million (17%) to £26.7 million (2022: £22.9 million) with improvements of £2.9 million in FIC, £0.7 million in Momart and £0.2 million in PHFC.  

 

Operating Profit

 

Operating profit of £0.9 million was £0.1 million below the prior year, with improvements from revenue growth offset by a number of factors, as described in the Chief Executive's review.

 

Net Financing Costs

 

The Group's net financing costs of £0.1 million were £1.3 million lower than the prior year due mainly to the movement in the fair value of the derivative instrument. The net underlying finance expense of £0.3 million was £0.1 million lower than the previous year because of higher interest rates on cash on deposit.  

 

Reported Pre-tax Profit

 

The reported pre-tax result for the six months ended 30 September 2026 was a profit of £0.8 million (2022: £2.3 million as restated per note 1). Underlying pre-tax profit was £0.6 million (2022: £0.6 million).

 

Taxation

 

Taxation charges on the period results for both the six months ended 30 September 2023 and 30 September 2022 have been estimated on the basis of 25% and 26% of profits arising in the UK and the Falkland Islands respectively, resulting in a current tax charge of £0.1 million for each period.

 

Earnings per Share

 

Diluted Earnings per Share ("EPS") derived from reported profits was 4.9 pence (2022: 13.8 pence). The movement is explained by the movement in the fair value of the derivative instrument. Underlying diluted EPS was 3.5p (2022: 3.7p).

 

Balance Sheet and Cash Flow

 

The Group's balance sheet remained strong with total net assets of £44.8 million, reflecting an improvement on the balances at 31 March 2023 of £44.0 million and 30 September 2022 of £43.1 million (as restated per note 1) of £0.8 million and £1.7 million respectively. This was largely driven by the revaluation of the Group's interest rate swap.

 

Net Debt






30 September 2023

30 September 2022

31 March 2023

 


£m

£m

£m

 


 



 

Bank loans*

(12.8)

(13.7)

(13.3)

 

Cash and cash equivalents

9.2

7.6

12.8

 

Net debt

(3.6)

 

(6.1)

 

(0.5)

 

Lease liabilities**

(6.2)

(6.2)

(6.4)

 

 

Net debt after lease liabilities

 

(9.8)

 

(12.3)

 

(6.9)

 

 

*Includes a mortgage of £11.9 million on the Group's freehold premises in Leyton (31 March 2023: £12.1 million).

**As detailed in the basis of preparation, the comparative numbers were restated to correct the accounting treatment of some right of use assets.

 

Bank loans reduced to £12.8 million (31 March 2023: £13.3 million) following scheduled loan repayments of £0.5 million.

The Group's cash balance reduced by £3.6 million to £9.2 million (31 March 2023: £12.8 million) reflecting scheduled interest, loan and lease repayments of £1.1 million, capital expenditure of £1.2 million and a £1.3 million net cash outflow from operating activities. The usual seasonality of activity in FIC and Momart resulted in an increase in working capital in the first six months, which should improve in the busier second half of the year. In addition to this, a small number of large creditor balances were settled after 31 March 2023.   

 

The Group's outstanding lease liabilities totalled £6.2 million (31 March 2023: £6.5 million) with £4.5 million of the balance (31 March 2023: £4.6 million) relating to the leases from Gosport Borough Council to PHFC for the Gosport Pontoon and associated ground rent, which run until June 2061.

 

Overall, net debt increased to £3.6 million (31 March 2023: £0.5 million).

 

 

 

 

 

Reuben Shamu

Chief Financial Officer

24 November 2023



 

Consolidated Income Statement

For the Six Months Ended 30 September 2023

 

Notes

Unaudited

Six Months to

30 September

2023

£'000

Restated

Unaudited

Six Months to

30 September

2022

£'000

Audited

Year Ended

31 March

2023

£'000

 

 

 



2

Revenue

26,689

22,890

52,712

 


 



 

Cost of sales

(16,107)

(14,004)

(31,588)

 

Gross profit

10,582

8,886

21,124

 


 



 

Operating expenses

(9,677)

(7,892)

(17,111)

 


 



 

Operating profit before non-trading items

905

994

4,013

 


 



3

Non-trading items

(8)

-

(79)

 

Operating profit

897

994

3,934

 


 



4

Net finance (expense)/income*

(75)

1,296

112

 


 



 

Profit before tax

822

2,290

4,046

 


 



5

Taxation

(209)

(559)

(924)

 


 




Profit attributable to equity holders of the Company

613

1,731

3,122

 

 

* Finance (expense)/income includes a non-trading movement in the fair value of derivative financial instruments of £238,000 (Six months ended 30 September 2022: £1,699,000; year ended 31 March 2023: £907,000).

 

 

2

Underlying profit before tax

592

591

3,218

 

6

Earnings per share

 



 


 



 

Basic

4.9p

13.8p

24.9p

 


 



 

Diluted

4.9p

13.8p

24.9p

 

See note 6 for an analysis of earnings per share on underlying profit (defined as profit after tax before non-trading items).

 

 

 


 

Consolidated Balance Sheet                                                     

At 30 September 2023

 

 

 

  Notes

Unaudited

30 September

2023

£'000

Restated

Unaudited

30 September

2022

£'000

Audited

31 March

2023

£'000

 

Non-current assets




 

Intangible assets

4,480

4,580

4,376

 

Property, plant and equipment

38,725

37,853

38,677

 

Investment properties

7,825

8,465

7,922

 

Investment in joint venture

259

259

259

 

Hire purchase lease receivables

493

751

681

 

Deferred tax assets

459

490

482

 

Derivative financial instruments

1,804

2,350

1,559

 

Total non-current assets

54,045

54,748

53,956

 

Current assets

 



 

Inventories

6,851

7,791

6,876

 

Trade and other receivables

10,084

8,042

10,189

 

Hire purchase lease receivables

405

370

397

8

Cash and cash equivalents

9,184

7,554

12,800

 

Total current assets

26,524

23,757

30,262

 

Total assets

80,569

78,505

84,218

 

Current liabilities

 



 

Trade and other payables

(9,857)

(8,895)

(13,718)

9

Interest bearing loans and borrowings

(1,560)

(1,422)

(1,520)

 

Corporation tax payable

(834)

(788)

(599)

 

Total current liabilities

(12,251)

(11,105)

(15,837)

 

Non-current liabilities

 



9

Interest bearing loans and borrowings

(17,465)

(18,504)

(18,214)

 

Deferred tax liabilities

(4,215)

(3,913)

(4,215)

 

Employee benefits

(1,873)

(1,870)

(1,978)

 

Total non-current liabilities

(23,553)

(24,287)

(24,407)

 

Total liabilities

(35,804)

(35,392)

(40,244)

 

Net assets

44,765

43,113

43,974

 

 

 



 

Capital and reserves

 



 

Equity share capital

1,251

1,251

1,251

 

Share premium account

17,590

17,590

17,590

 

Other reserves

703

703

703

 

Retained earnings

25,298

23,659

24,514

 

Hedging reserve

(77)

(90)

(84)

 

Total equity

44,765

43,113

43,974

 



 

Consolidated Cash Flow Statement

For the Six Months Ended 30 September 2023

 

Continued on next page.



Consolidated Statement of Comprehensive Income

For the Six Months Ended 30 September 2023


Unaudited

Six Months to

 30 September

2023

£'000





 

Profit for the period

613

1,731

3,122

 


 



 

Amortisation of hedge reserve

7

7

13

 

Deferred tax on share options and other financial liabilities

-

-

(3)

 

 

 



 

Items that are or may be reclassified subsequently to profit or loss

7

7

10

 

 

 


 

 

Re-measurement of the FIC defined benefit pension scheme

100

678

553

 

Movement on deferred tax asset relating to the pension scheme

(25)

(176)

(176)



 




Items which will not ultimately be recycled to the income statement

75

502

377


Total other comprehensive income

82

509

387


Total comprehensive income / (loss)

695

2,240

3,509

 

Condensed Consolidated Statement of Changes in Shareholders' Equity

For the Six Months Ended 30 September 2023

 

 

 

 

 

 

Unaudited

Six Months to

 30 September

2023

£'000

Restated

Unaudited

Six Months to

30 September

2022

£'000

Audited

Year Ended

31 March

2023

£'000


 



Shareholders' funds at beginning of period

43,974

40,825

40,825


 



Profit / (loss) for the period

613

1,731

3,122

Amortisation of hedge reserve

7

7

13

Deferred tax on share options and other financial liabilities

-

-

(3)

Re-measurement of the defined benefit pension liability, net of tax

75

502

377

Total comprehensive income / (loss)

695

2,240

3,509

Transactions with owners in their capacity as owners:

 



Share-based payments

96

48

41

Dividends paid

-

-

(401)

Total transactions with owners

96

48

(360)

Shareholders' funds at end of period

44,765

43,113

43,974

 



 

Notes to the Unaudited Interim Statements

 

1. Basis of Preparation

 

This interim financial statement comprises the condensed consolidated balance sheets at 30 September 2023, 30 September 2022 and 31 March 2023 and condensed consolidated statements of income, comprehensive income, cash flows and changes in shareholders' equity for the periods then ended and related notes of FIH group plc (hereinafter 'the interim financial information').

 

Cash flow forecasts for the Group have been prepared covering the going concern period and the directors have considered downside scenarios to the base case forecasts to reflect emerging risks and uncertainties as a result of global economic conditions. The base case and sensitised forecasts indicate that the business will be cash generative over this period and that the Group will comply with its covenants and have sufficient funds to meet its liabilities as they fall due throughout the going concern period.

 

Consequently, the directors are confident that the Group and Company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of issue of these interim financial statements and the interim financial statements have therefore been prepared on a going concern basis.

 

The interim financial information has been prepared in accordance with the accounting policies set out in the Group's 2023 annual financial statements. As permitted, these interim financial statements have been prepared in accordance with AIM rules and not in accordance with IAS34 'Interim Financial Reporting'.

 

Restatements

 

The prior period financial information for the following areas was restated as set out below.

 

Right of use assets

The seabed lease in PHFC contains variable rental payments which are reset every five years based on the revenue of the ferry business. This lease was previously incorrectly accounted for as one 50-year lease with all future expected payments over the period of the lease reflected in the measurement of the liability. The liability has been restated as an element of the future lease payments varies with the revenue of PHFC and should not have been reflected in the measurement of the liability. The lease liability will be remeasured in the future when variable payments become fixed. The impact at 30 September 2022 was an increase in retained earnings of £0.2 million and reductions in property, plant and equipment and interest-bearing loans and borrowings of £0.4 million and £0.6 million respectively. There was no impact on profit for the period ended 30 September 2022.

 

Hedge accounting

Following a reassessment of the criteria for applying hedge accounting after the benchmark change from LIBOR to SONIA, it was concluded that the hedging criteria were no longer met. Hedge accounting was therefore discontinued from 1 January 2022. The impacts of this change were as follows:

 

·      An increase in retained earnings of £0.5 million and reduction in the hedging reserve in equity of £0.5 million as at 31 March 2022.

·      A credit to the consolidated income statement of £1.3 million in the period ending 30 September 2022 (comprising a £1.7 million credit to net finance income and a £0.4 million charge to tax expense), which was previously incorrectly accounted for in the hedging reserve. The impact on both basic and diluted EPS in the period to 30 September 2022 was an increase of 10.1p.

 

Section 245 Statement

 

The comparative figures for the financial year ended 31 March 2023 are not the Company's full statutory accounts for that financial year. Those accounts have been reported on by the Company's auditors and delivered to the Registrar of Companies. The report of the auditor was unqualified, did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying their report and did not contain a statement under section 498 (2) or 498 (3) of the Companies Act 2006.



 

2. Segmental Revenue and Profit Analysis

 

Unaudited - Six Months Ended 30 September 2023

 



General Trading (Falkland Islands)

Ferry Services (UK)

Art Logistics and Storage

(UK)

 

 

Total

 


£'000

£'000

£'000

£'000

£'000

 

Revenue

15,172

2,231

9,286

-

26,689

 







 

Segment operating profit before net financing costs

253

511

141

-

905

 







 

Non-trading items

-

(8)

-

-

(8)

 







 

Profit before net financing costs

253

503

141

-

897

 







 

Finance income

23

23

32

238

316

 

Finance expense

(46)

(130)

(215)

-

(391)

 







 

Segment profit / (loss) before tax

230

396

(42)

238

822

 







 

Assets and liabilities






 

Segment assets

34,862

9,321

31,355

5,031

80,569

 

Segment liabilities

(10,563)

(7,123)

(17,672)

(446)

(35,804)

 

Segment net assets

24,299

2,198

13,683

4,585

44,765

 







 

Other segment information






 

Capital expenditure:






 

  Property, plant and equipment

706

176

236

-

1,118

 

  Investment properties

5

-

-

-

5

 

  Computer software

59

-

53

-

112

 

Total capital expenditure

770

176

289

-

1,235

 

 

Depreciation and amortisation:






 

  Property, plant and equipment

421

225

475

-

1,121

 

  Investment properties

102

-

-

-

102

 

  Computer software

-

-

8

-

8

 

Total depreciation and amortisation

523

225

483

-

1,231

 

 

 

 

 

 

 

 

Underlying profit/(loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment operating profit before non-trading items

253

511

141

-

905

 

Finance income

23

23

32

-

78

 

Finance expense

(46)

(130)

(215)

-

(391)

 

Underlying profit / (loss)

before tax

230

404

(42)

-

592

 



 

2. Segmental Revenue and Profit Analysis (Continued)

 

Unaudited - Six Months Ended 30 September 2022

 



General Trading (Falkland Islands)

Ferry Services (UK)

Art Logistics and Storage

(UK)

Unallocated

Total

 


£'000

£'000

£'000

£'000

£'000

 

Revenue

12,285

2,039

8,566

-

22,890

 







 

Segment operating profit before net financing costs

334

498

162

-

994

 







 

Finance income

-

-

-

1,699

1,699

 

Finance expense

(35)

(146)

(222)

-

(403)

 







 

Segment profit / (loss) before tax

299

352

(60)

1,699

2,290

 







 

Assets and liabilities






 

Segment assets

32,573

9,615

31,331

4,986

78,505

 

Segment liabilities

(9,022)

(7,313)

(17,917)

(1,140)

(35,392)

 

Segment net assets

23,551

2,302

13,414

3,846

43,113

 







 

Other segment information






 

Capital expenditure:






 

  Property, plant and equipment

322

48

472

5

847

 

  Investment properties

39

-

-

-

39

 

  Computer software

25

-

12

-

37

 

Total capital expenditure

386

48

484

5

923

 

 

Depreciation and amortisation:






 

  Property, plant and equipment

443

201

480

-

1,124

 

  Investment properties

71

-

-

-

71

 

  Computer software

12

11

4

-

27

 

Total depreciation and amortisation

526

212

484

-

1,222

 

 

 

 

 

 

 

 

Underlying profit/(loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment operating profit before non-trading items

334

498

162

-

994

 

Finance expense

(35)

(146)

(222)

-

(403)

 

Underlying profit / (loss)

before tax

299

352

(60)

-

591

 

 



 

2. Segmental Revenue and Profit Analysis (Continued)

 

Year Ended 31 March 2023

 

 



General Trading (Falkland Islands)

Ferry Services (UK)

Art Logistics and Storage

(UK)

Unallocated

Total

 


£'000

£'000

£'000

£'000

£'000

 

Revenue

29,383

3,817

19,512

0

52,712

 







 

Segment operating profit before net financing costs

1,955

608

1,450

0

4,013

 







 

Non-trading items

0

0

(79)

0

(79)

 







 

Profit before net financing costs

1,955

608

1,371

0

3,934

 







 

Finance income

0

0

3

907

910

 

Finance expense

(70)

(287)

(441)

0

(798)

 







 

Segment profit / (loss) before tax

1,885

321

933

907

4,046

 







 

Assets and liabilities






 

Segment assets

35,933

9,519

33,889

4,877

84,218

 

Segment liabilities

(12,954)

(7,341)

(19,364)

(585)

(40,244)

 

Segment net assets

22,979

2,178

14,525

4,292

43,974

 







 

Other segment information






 

Capital expenditure:






 

  Property, plant and equipment

1,115

205

539

0

1,859

 

  Investment properties

10

0

0

0

10

 

  Computer software

81

0

34

0

115

 

Total capital expenditure

1,206

205

573

0

1,984

 

 

Depreciation and amortisation:






 

  Property, plant and equipment

1,231

418

771

-

2,420

 

  Investment properties

210

-

-

-

210

 

  Computer software

-

-

10

-

10

 

Total depreciation and amortisation

1,441

418

781

-

2,640

 

 

 

 

 

 

 

 

Underlying profit/(loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment operating profit before non-trading items

1,955

608

1,450

-

4,013

 

Finance income

-

-

3

-

3

 

Finance expense

(70)

(287)

(441)

-

(798)

 

Underlying profit / (loss)

before tax

1,885

321

1,012

-

3,218

 



 

3. Non-trading Items


Unaudited

Six Months to

30 September

2023

£'000

Restated

Unaudited

Six Months to

30 September

2022

£'000

Audited

Year Ended

31 March

2023

£'000


 



Profit before tax as reported

822

2,290

4,046

 

 



Restructuring costs

8

-

79

Movement in fair value of derivative financial instruments

(238)

(1,699)

(907)

Non-trading items

(230)

(1,699)

(828)

Underlying profit before tax

592

591

3,218

 

 

Restructuring costs relate to employee redundancies.

 

4. Finance Income and Expense


Unaudited

Six Months to

30 September

2023

£'000

Restated

Unaudited

Six Months to

30 September

2022

£'000

Audited

Year Ended

31 March

2023

£'000


 



Bank interest receivable

78

-

3

Underlying finance income

78

-

3


 



Movement in fair value of derivative financial instruments

238

1,699

907

Non-trading finance income

238

1,699

907

 

 



Total finance income

316

1,699

910

 

 



Interest payable on bank loans

(208)

(209)

(424)

Net interest cost on the FIC defined benefit pension scheme liability

(46)

(35)

(70)

Lease liabilities finance charge

(137)

(159)

(304)

Total finance expense

(391)

(403)

(798)

 

 



Net finance (expense) / income

(75)

1,296

112


 


 

5. Taxation

 


Unaudited

Six Months to

30 September

2023

£'000

Restated

Unaudited

Six Months to

30 September

2022

£'000

Audited

Year Ended

31 March

2023

£'000


 



Current tax charge

209

559

579

Prior year research and development tax credit

-

-

(99)

Deferred tax charge

-

-

444

Total tax expense

209

559

924

 

The current tax charge has been estimated on the basis of 25% and 26% of profits arising in the UK and the Falkland Islands respectively (September 2022: 19% and 26% of profits arising in the UK and the Falkland Islands respectively).

 

6. Earnings Per Share on Underlying Profit

 

To provide a comparison of earnings per share on underlying performance, the calculation below sets out basic and diluted earnings per share based on underlying profits.

 


Unaudited

Six Months to

30 September

2023

Number

Restated

Unaudited

Six Months to

30 September

2022

Number

Audited

Year Ended

31 March

2023

Number


 



Profit on ordinary activities after taxation

613

1,731

3,122


 



Average number of shares in issue

12,519,900

12,519,900

12,519,900

Effect of share options

-

-

-

Diluted weighted average number of shares

12,519,900

12,519,900

12,519,900

 

 



Basic earnings per share

4.9p

13.8p

24.9p

Diluted earnings per share

4.9p

13.8p

24.9p

 

To provide a comparison of earnings per share on underlying performance, the calculation below sets out basic and diluted earnings per share based on underlying profits.

 


Unaudited

Six Months to

30 September

2023

£'000

Restated

Unaudited

Six Months to

30 September

2022

£'000

Audited

Year Ended

31 March

2023

£'000

Underlying profit before tax (note 3)

592

591

3,218

 

 

 

 

Underlying taxation

(152)

(132)

(705)

Underlying profit / (loss) after tax

440

459

2,513

Basic earnings per share on underlying profit / (loss)

3.5p

3.7p

20.1p

Diluted earnings per share on underlying profit / (loss)

3.5p

3.7p

20.1p

 

 

7.  Employee Benefits

 

The Group's pension obligation, the Falkland Islands Company Limited Pension Scheme, is unfunded and therefore not subject to valuation volatility as a result of stock market fluctuations.

 

The Group's pension liability was recalculated under IAS 19 at 30 September 2023. The assumptions used were based on those for the year ended 31 March 2023, updated for changes in market rates. The resultant net liability reduced to £1.9 million driven by an increase in the discount rate assumption.

 

 



 

8.  Cash and Cash Equivalents

 


Unaudited

30 September

2023

£'000

Unaudited

30 September

2022

£'000

Audited

31 March

2023

£'000

Cash and cash equivalents in the balance sheet

9,184

7,554

12,800

 

 


Unaudited

Six Months to

30 September

2023

£'000

Restated

Unaudited

Six Months to

30 September

2022

£'000

Audited

Year Ended

31 March

2023

£'000


 



Net decrease in cash and cash equivalents

(3,616)

(2,049)

3,254

Exchange gains / (losses)

-

31

(26)

Net decrease in cash and cash equivalents after exchange losses

(3,616)

(2,018)

3,228

Bank loan repayments

459

472

928

Other non-cash changes

(118)

-

(561)

Lease liabilities repayments

368

321

618

Decrease in interest bearing loans and borrowings

709

793

985


 



Net (increase) / decrease in debt

(2,907)

(1,225)

4,213

Net debt brought forward

(6,934)

(11,147)

(11,147)

Net debt

(9,841)

(12,372)

(6,934)

 

Net debt

Cash balance

9,184

7,554

12,800

Less: Total interest-bearing loans and borrowings

(19,025)

(19,926)

(19,734)

Net debt

(9,841)

(12,372)

(6,934)

 

9.  Interest-bearing Loans and Borrowings

 

 

Unaudited

30 September

2023

£'000

Restated

Unaudited

30 September

2022

£'000

Audited

31 March

2023

£'000

Non-current liabilities

 



Secured bank loans

11,796

12,759

12,316

Lease liabilities*

5,669

5,745

5,898

Total non-current interest-bearing loans and lease liabilities

17,465

18,504

18,214

Current liabilities

 



Secured bank loans

1,001

952

939

Lease liabilities*

559

470

581

Total current interest-bearing loans and lease liabilities

1,560

1,422

1,520

Total liabilities

 



Secured bank loans

12,797

13,711

13,255

Lease liabilities*

6,228

6,215

6,479

Total interest-bearing loans and lease liabilities

19,025

19,926

19,734

 

* As detailed in the basis of preparation, the comparative numbers were restated to correct the accounting treatment of some right of use assets.

 



 

10.  Capital Commitments

 

At 30 September 2023, the Group had capital commitments of £447,000 which had not been provided for in the financial statements, comprising £408,000 in Momart and £39,000 in PHFC.

 

At 30 September 2022, the Group had capital commitments of £615,000 which had not been provided for in the financial statements, comprising £482,000 in Momart, £107,000 in FIC and £26,000 in PHFC.

 

Directors

 

Registered Office

Nick Henry

Non-executive Chairman

Kenburgh Court

Stuart Munro

Chief Executive

133-137 South Street

Reuben Shamu

Chief Financial Officer

Bishop's Stortford

Rob Johnston

Non-executive Director

Hertfordshire CM23 3HX

Dominic Lavelle

Non-executive Director

E: admin@fihplc.com

Holger Schröder

Non-executive Director

W: www.fihplc.com


 

Registered number 03416346

 

 

 

Company Secretary

 

 

 

 

 

AMBA Secretaries Limited

 


 

 

 

 

 

 

Corporate Information

 

 

Stockbroker and Nominated Adviser

W.H. Ireland Limited

24 Martin Lane,

London EC4R 0DR

 

 

 

 

 

 

Solicitors

Shoosmiths LLP

1 Bow Churchyard,

London EC4M 9DQ

 

 

 

 

 

 

Auditor

Grant Thornton UK LLP

103 Colmore Row,

Birmingham,

Birmingham B3 3AG

 

 

 

 

 

 

Registrar

Link Group

10th Floor Central Square,

29 Wellington Street,

Leeds LS1 4DL

 

 

 

 

 

Financial PR

Novella Communications

South Wing, Somerset House

London

WC2R 1LA

 

 

 

 

 

The Falkland Islands Company

 

Phil Smith, Director

T: 00 500 27600

E: info@fic.co.fk

W: www.falklandislandscompany.com

 

The Portsmouth Harbour Ferry Company

Adam Brown, Director

T: 02392 524551

E: admin@gosportferry.co.uk

W: www.gosportferry.co.uk

 

Momart Limited

 

Alison Jordan, Director

T: 020 7426 3000

E: enquiries@momart.com

W: www.momart.com

 

www.fihplc.com

 

 

 

 

 

 

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